Is your business involved with trailer interchange? When it comes to the trucking industry, it is common for drivers to transport or use trailers that belong to another party. What many truckers don’t realize is while their liability policy extends to the borrowed trailer, it does not cover physical damage. The trucker is entirely responsible for physical damage to the trailer while it is in their care.
To adequately protect yourself you need trailer interchange insurance. Let’s take a closer look at what this coverage is and how it works.
Trailer Interchange Insurance, Explained
Trailer interchange insurance is a policy specifically made for physical damage to a non-owned trailer in your care. This coverage can be added to the business auto insurance policy or a trucker’s liability policy. An example of when a trailer falls into this category is when motor carriers trade or share trailers to cover scheduling needs. One carrier may have a trailer located in one state but needs to pick up freight in another. They can find a carrier with the opposite needs to fill the gap.
To adequately protect your business you need to consider all the corner where risk can be hiding. A qualified agent can help you determine where your coverage gaps lie.
Why It’s So Important
Whether a business borrows or uses somebody else’s trailer or not, it is in their best interest to secure full insurance protection. Even if you already have a trucker’s liability insurance policy in place, you must keep in mind that no physical damage coverage is included and trailer interchange actions require a specified policy. Ponder upon these common scenarios where you are likely to need this insurance:
- Trailer Interchange Agreements: This is a written agreement between a motor carrier and driver that requires the insurance.
- Power Only Drivers: Often shipping companies hire drivers to transport empty trailers and require the driver to have trailer interchange insurance.
- UIIA Members: The UIIA requires members to carry minimum limits on various insurance policies including trailer interchange insurance.
If you are transporting any type of freight under a written agreement, you need to protect your business from the unique liabilities, or you risk paying an expensive bill if damages occur during your use. A trailer interchange policy will have your back in the scenarios that would have otherwise pulled your business under.
About Tobico Trucking Insurance
Trucking insurance is one of the most difficult types of insurance to obtain, but it doesn’t have to be. At Tobico Trucking Insurance, we are experienced and knowledgable about the trucking insurance market and the needs of trucking operations of all types and sizes. You need an agent who has the specialized knowledge of this ever-changing industry, and we have the products and the dedicated customer service to provide you with what you need. For more information, contact us any time of day at (469) 731-0707 to find out how we can help you.
